Experience or Skills, which should you focus on when hiring? In the world of financial advisory firms, the conventional wisdom has often been to seek applicants with extensive industry experience. However, it’s time to challenge this age-old notion and consider a new perspective. Instead of placing the sole emphasis on industry experience, financial advisory firms should recognize the value of applicants with diverse skills and backgrounds. In this post, we’ll explore why a shift in hiring practices is essential for the industry’s growth and success.
The Power of Diverse Skills:
- Traditionally, the financial advisory sector has leaned towards hiring candidates with industry experience, assuming it to be the gold standard for success. While experience is undoubtedly valuable, a one-size-fits-all approach limits the potential for innovation and growth. Consider the advantages of recruiting individuals with diverse skillsets from fields such as technology, marketing, psychology, or hospitality
Applicants with backgrounds in technology can bring fresh insights into the digital transformation of the industry, helping financial advisory firms adapt to changing customer expectations and enhance their technological infrastructure. Those with marketing expertise can assist in crafting compelling client communication strategies, which are vital in attracting and retaining clients. Individuals with a background in psychology can contribute to a deeper understanding of client behavior and decision-making, leading to more effective financial advisory services. Moreover, hospitality professionals can bring fresh perspectives on client service and relationship building.
The Need for a Paradigm Shift:
- To fully leverage the potential of diverse skillsets, financial advisory firms must rethink their hiring criteria. While experience in the industry remains important, it should no longer be the sole determining factor. The question is, how can firms accurately evaluate the skills and knowledge of applicants from various backgrounds?
Outsourced Employee Evaluation Tools:
- The solution may lie in seeking assistance from outsource partners specialized in evaluating and profiling the skills and knowledge of job applicants. These vendors employ a range of innovative tools and methodologies, such as AEP’s T.E.E.M.S program to objectively assess an individual’s capabilities. They can design customized assessments that evaluate an applicant’s skills in areas such as financial knowledge, communication, and client service skills.
Additionally, by evaluating knowledge and skills before hiring a new team member firms can gain valuable insights into an applicant’s potential to excel in the financial advisory industry, even if they lack specific industry experience. This enables financial advisory firms to make more informed hiring decisions, based on a holistic evaluation of the candidate’s abilities, potential, and aptitude.
Designing a Tailored Training Plan:
- Once financial advisory firms have identified promising applicants from diverse backgrounds, the next step is to design a tailored training plan. The goal is to bridge any knowledge or experience gaps and ensure that new hires can seamlessly integrate into the firm’s niche and culture.
Outsourcing can play a crucial role in this phase as well. By working closely with the vendor, firms can create personalized training programs that address the specific needs and skill development of each new hire. These programs can include a mix of on-the-job training, mentorship, online courses, and workshops, designed to accelerate the learning curve and prepare newcomers for success in the financial advisory world.
Embracing the Future:
- In a rapidly evolving financial landscape, it’s time for financial advisory firms to embrace a more flexible and inclusive approach to hiring. By acknowledging the value of diverse skills and enlisting the assistance of partners for skills assessment and tailored training, firms can position themselves for long-term success.
In conclusion, the financial advisory industry should break free from the traditional hiring mold and seek applicants with a variety of skills, not solely industry experience. With the right approach, firms can tap into the potential of diverse backgrounds and expertise, foster innovation, and remain competitive in an ever-changing landscape. Embracing Outsourcing for skills evaluation and training design is a key step towards achieving this transformative shift in the industry.
The Employee Training and Development Partner For Independent Financial Advisory Firms